Parveen Baji is a 40-year-old married woman. She lives in the city of Kot Radha Kishan, which is 24km from Kasur, Pakistan. Her husband is M., who drives a delivery truck. Parveen Baji is very hardwoking. In addition to being an excellent wife and mother, she works as a seamstress from home. She sews 3 dresses per day and charges 80 Pakistani rupees per dress. She has five kids: four sons and one daughter. None of her children go to school. She would use this loan to repair her husband’s vehicle so that he can continue to earn income for the family.
She is the leader of a a group of women also seeking loans. Kosar Baji, Nusrat Baji, and Nazra Baji would use their portion of the loan to buy fabric for their clothing businesses.
This is a group loan. The loan funds will be distributed among the group members, each of whom will invest in her own business. The members mutually guarantee one another's loans. If one member does not repay, the other members are responsible.
This is a Group Loan
In a group loan, each member of the group receives an individual loan but is part of a larger group of individuals. The group is there to provide support to the members and to provide a system of peer pressure, but groups may or may not be formally bound by a group guarantee. In cases where there is a group guarantee, members of the group are responsible for paying back the loans of their fellow group members in the case of delinquency or default.
Kiva's Field Partners typically feature one borrower from a group. The loan description, sector, and other attributes for a group loan profile are determined by the featured borrower's loan. The other members of the group are not required to use their loans for the same purpose.